Oil Set for Worst Week Since July as Saudis Restore Production

Oil is heading for the biggest weekly loss since July on indications Saudi Arabia is restoring lost crude production quicker-than-expected after attacks on its key energy infrastructure.

Futures slid as much as 0.6% in New York on Friday. The kingdom is about a week ahead of its repair schedule and is pumping more than 8 million barrels a day, according to people familiar with the matter. Further price losses may be capped by the prospect of escalating tension in the Middle East. The U.S. said it will send an additional Patriot missile battery and 200 more personnel to Saudi Arabia, extending the region’s air defense in the wake of the Sept. 14 assault.

The U.S., Saudi Arabia and major European powers have all blamed Iran for the attacks on the kingdom, which took out 5% of global supply and spurred a record spike in oil. Tehran has denied the allegations. A deepening manufacturing slump in Germany, more signs of economic weakness in China and rising U.S. crude stockpiles have also weighed on prices this week.

West Texas Intermediate for November delivery lost 30 cents to $56.11 a barrel on the New York Mercantile Exchange as of 12:18 p.m. Singapore time. The contract fell 8 cents to $56.41 on Thursday and is down 3.4% this week, the biggest weekly drop since July 19. Prices are up 1.8% this month.

Brent for November settlement dropped 56 cents, or 0.9%, to $62.18 a barrel on the ICE Futures Europe Exchange. The contract is down 3.3% this week. The global benchmark crude traded at a $6.07 premium to WTI.

Source : Bloomberg

RELATED NEWS

Oil fell after touching its highest since March at more than $40 a barrel on Wednesday, pressured by doubts that an early meeting of OPEC and its allies to extend existing output cuts will take place....

Oil prices edged down on Monday as traders took profits, with the Organization of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record ...

Oil prices edged lower on Friday, set to post their first weekly fall in five weeks, after U.S. inventory data showed lacklustre fuel demand in the world’s largest oil consumer while worsening U.S.-Ch...

Oil prices fell in early trade on Thursday after U.S. crude, gasoline and heating oil inventories all rose more than expected, dousing hopes of a smooth recovery in demand from coronavirus lockdowns.
...